One World Lithium — Very Large Lithium-Brine Prospect to be drilled within 30 days
One World Lithium recently announced drilling dates in late March 2019 and that US Investors can now buy stock on the OTCQB Venture Exchange using the company’s symbol OWRDF The Company continues to trade on the Canadian Securities Exchange (CSE) with its symbol OWLI
One World Lithiumgeophysical results at the Salar del Diablo lithium property in Baja, Mexico produced significantly better results than expected. Two highly conductive zone are more than 300 and 600 feet thick that likely contain brine. These results are from 20% of its 290 square mile property that may be a discovery in the making. The geophysical zones cover more than 54 square kilometers. Eighty four geochemical surface samples have an average grade of 86 pars per million lithium which is considered high grade and has defined an anomaly 150 square kilometers in the same area as the geophysical zones. The Salar del Diablo is 8,000 feet deep to bedrock and may contain stacked geophysical and geochemical pay zones going to depth.
The investment community and the lithium industry are watching closely as the Salar del Diablo is the largest lithium in brine property to be drill tested in early 2019.
The need for lithium continues to accelerate, with demand from companies that produce batteries to power electric cars, laptops and other high-tech devices, expected to increase 650% by 2027, with overall lithium demand forecast to rise more than threefold over that period with the price of lithium expected to double at the same time a new study shows.
The automotive industry has had the biggest influence on the lithium market in 2017. Chinese-owned Volvo announced that during 2019 Volvo would no longer be producing fossil-fuel powered vehicles while China further committed to having at least 5 million electric cars on their roads by 2020. A recent Reuters article reported “Chinese automakers are on track to produce 49 of the 103 new electric car models that will be launched globally by 2020, as part of China’s push to accelerate the switch to battery power from oil.”
Globally, the automotive manufactures are making capital expenditures of $360 billion (USD) by 2027.
While the industry is trying to find alternatives to cobalt and graphene as their prices continue to rise. There are more than 30 giga factories being built or in the planning stages that will drive the price of lithium ion batteries down as the volume of battery sales increase. Lithium is the only battery material that will see its price increase, Why? The reason is Lithium is less than 3% of the cost of a lithium ion battery while cobalt is 30%Bloomberg said, “even if the price of lithium soars 300 percent, battery pack costs would rise by only 2%.” Tesla, CEO, Elon Musk agrees and has called lithium simply “the salt on the salad.”
So where does all the lithium come from? It’s mined on 6 continents and it’s not rare. In fact Deutsche Bank Markets Research claims there’s enough reserves to last 185 years. The largest reserves are in South America in what is called ‘The Lithium Triangle’. This triangle refers to Chile, Argentina and Bolivia that produces its lithium from vast brine deposits. While the Triangle has the most reserves, the number one producer of Lithium is Australia that produces 40 % of world production from pegmatite deposits that are very costly.
Global Production of lithium is about 15,000 tons of refined lithium each year from either brines, clay or pegmatite deposits this is equivalent to over 200,000 tons of lithium carbonate.. In brines, Lithium is concentrated as an ion in brines. Producing lithium from a brine and has a very small carbon footprint and is produced by pumping underground brine in aquifers to the surface where the lithium is separated by modern technologies rather than traditional evaporation ponds
In the final analysis, it is all about being a low cost producer with a long term supply contract. A low cost producer of lithium in a brine is about $ 2,0000 per ton of lithium carbonate while more than $ 4,000 for a ton of lithium carbonate from a pegmatite deposit. Lithium carbonate, depending where the deposit is, sells between $10,000 to $ 25,000 per ton. A typical lithium in brine operation will produce between 5,000 and 20,000 tons lithium carbonate per year………..and you can do the math.
The Salar del Diablo has the potential to be a low cost producer as there are roads as well as a regional powerline crossing the property, is only 800 feet above sea level, 100 kilometers from the USA border on paved highways, 35 kilometers from a regional service center, San Felipe which also has a sea port that can reach world markets including China and Asia.
I’ve written about One World Lithium (CSE:OWLI)in September 2017. OWL’s Salar del Diablo encompasses 291 square mile which is approximately the same size of Chile’s Salar de Atacama, the world’s largest lithium producer and the Salar del diablo also has the same five geological characteristics that are hot springs, a regional heat source, volcanic source rocks, fault structures, and a closed basin, meaning no water flows downstream from the dried lake.
John Hiner, a senior geologist, has been successfully exploring for lithium since 2009, saw the perfect basin that met every one of the necessary geological characteristics to contain a lithium in brine deposit and reached out to OWL.
Tim Brock, Founding Shareholder and Advisor to the Board of One World has many early successes in the resource industry including the War Eagle gold project in the 1990’s that he acquired by staking claims on War Eagle Mountain that made him and many investors wealthy as well as several other resource projects that were valued up to $ 27/ share. (CDN) Investors are looking to see if he could pull it off again with the Salar del Diablo property.
OWL plans to drill 4,2500 meters with 10 holes planned to intersect the 64 square kilometers of geophysical conductive zones that may contain lithium in brine. The two remaining holes are planned to intersect the 150 square kilometer lithium anomaly. The known geophysical and geochemical zones cover less than 20% of the property.
On completing the drilling program, One World Lithium will then own an 80%
working interest with an election to buy a further 10% property interest. The salar del diablo is located in the state of California Baja Norte, Mexico which ls politically stable and welcomes mineral exploration.
Can Tim Brock do it again? He thinks so as the Salar del Diablo has more potential than any other property he has bought …and he knows a thing or two about that.
Stay tuned, this could be interesting.
DISCLOSURE: I own stock in this company
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Originally published at www.equities.com.
Originally published at www.equities.com.